Within a short period of time, the country rose to be one of the high-income countries in the world. Currently, it comprises 0.42% of the World’s GDP (PPP). There was an exceptional shift from the export of labor-intensive goods like textiles, garments and basic electronics to high-value products like telecommunication, equipment, pharmaceuticals, refined petroleum, electronics, chemicals, etc. Singapore received 14 loans over the period of 1963-1975 from the World Bank and the majority of them was taken for infrastructural development like port expansions, sewage system, power and telecommunications etc. Now having one of the best infrastructures in the world, it has progressed in such way that it contributed US$10 million for the ‘Global Infrastructural Facility’ of World Bank. A loan taker to fund contributors for the same sector is a commendable evolution. Over 80% of Singapore’s residents live in public housing. Manufacturing and service sectors stand as a support system for Singapore’s evolution. 

Now Singapore is ranked NO.1 among 42 countries in the Asia- Pacific region, having the status as the world’s freest economy in 2020 index with an economic freedom score of 89.4. According to the Global Competitiveness Report (GCI 4.0), Singapore is the most competitive economy with the first rank in road quality infrastructure, the efficiency of seaport and airport services, sea transport connectivity, macroeconomic stability, public sector performance, trade openness, labour market and no terrorism incidence. Singapore’s economic policies and strategies mostly focus on long-term investment and growth. One such strategy of Singapore which is futuristic in nature is discussed below.

Smart Nation

The third industrial revolution which is also known as digital revolution came into force with rapid increase in and adoption of computerization. From then, growth of technology is associated with accelerated innovations and inventions. Technology plays a significant role in economic development. While many countries are focusing on their digital future, Singapore is yet another country with its rapid digital transformation. The success of National Computerisation and Growth of the info-communications industry of Singapore stands as a certification for its national digitalization efforts. Taking a step ahead while keeping in mind the future challenges with respect to resource constraints, rising ageing and urban population and to attain the comparative advantage for Singapore, it launched the ‘SMART NATION’ initiative on November 2014 with a vision to provide a fulfilling and meaningful life for their people.

The initiative aims to ‘TRANSFORM SINGAPORE THROUGH TECHNOLOGY’ by providing a convenient and sustainable living for its people with enhanced access to information and opportunities, space for businesses to improve productivity, innovation and growth and finally to have a government that can use the technology to serve its people better. Smart Nation would be a combined effort by people, governments and industries for their prosperous future.

The three pillars of the Singapore’s Smart Nation are:

  The Digital Economy focuses on attracting foreign investment, improving business efficiency and competitiveness along with providing wide opportunities for Singaporeans to stay ahead in the future.

• Digital Government:  The central aim of the future digital government is to create” a government that is digital to the core and serves with the heart.”

By using the technology it focuses to serve its people and business with better opportunities to get a good service experience.

• Digital Society: A complete digital society, in general, should make sure that all the people in that society have access to technology and they are in a position to adopt them with relevant knowledge and The Digital Society of Singapore also aims at digital inclusion.

Smart Nation and Digital Government Group (SNGG) which involves Smart Nation and Digital Government Office (SNGO) along with implementing agency, Government Technology Agency (Gov Tech) is responsible for building a Smart Nation.

According to the Smart Nation and Digital Government Office, the initiative’s ”priority is to harness technology to address national challenges and drive transformation in key domains: health, education, transport, urban solutions and finance.”

• myENV app which provides the current environmental information and updates
• OneService app through which people can report all municipal issues in a common platform
• Smart Towns includes providing intelligent homes that make life easier, comfortable and enjoyable for the people. Example of this is the development of Punggoll town
• Autonomous vehicles which is helpful for the elderly and specially able persons
• On-demand shuttle where operations of transport services would be demand-driven so that resource management can be monitored
• HealthHub which is an online health information and service  portal
• Contactless fare payment for public transport, TeleHealth, Digital Government Services, Data Innovation Program Office, CorpPass for businesses are some of the initiatives which are paving way for the Smart Nation.  

 The Strategic National Projects are notable ones which stand as an enabler for building the Smart Nation. They are,

1. CODEX
2. E-Payments
3. Moments Of Life Initiative
4. National Digital Identity
5. Smart Nation Sensor Platform
6. Smart Urban Mobility

Smart Nation Scholarship: The best resource available in a country would be its young talent pool and a nation which utilises it in a better way will have a greater advantage. Singapore is taking a big step towards future of technologies, in order to achieve this, the country has to appreciate and develop the young brains and this scholarship is one such way to help the pillars of the nation who are going to play an active role in the transformation with technology.

In order to bring the expertise in the area of technology and engineering, they also provide Smart Fellowship so that there would be birth of innovative ideas from different individuals.

Challenges

 According to IMD Smart City Index 2019, the smartest city in the world is Singapore. In 2018 it also won the Smart City Award in the Smart City Expo World Congress. Though the nation travels towards its goal, there are also many challenges ahead on the road. According to the Institute of Policy Studies, in 2017, 55.9% of Singaporeans polled, were optimistic about Smart Nation initiatives and in 2018 it was 53.4% so there is a big responsibility in the hands of the state to retain the people’s confidence on the initiatives and to remove the fear of technological disruption. While many nations are piloting with the smart city initiative, Singapore with its brave efforts has planned it for the whole nation and the main challenge lies in reducing the gap between vision and reality. It must also increase technological accessibilities. Another big tension is about digital security.  Having openness in data availability, the state must be very cautious about cybersecurity problems. We could see the government of Singapore taking various steps to overcome these difficulties. Apart from these, there are some of the problems which are external in nature. The growing economic nationalisation, rise in anti-globalisation and protectionism among the other countries, problems like deforestation in Singapore ( It lost nearly 90% of its forest, since 1980 due to increased land usage)and other technology-related environmental problems, rising concerns on the migrant workers who contributes more to that economy may also have an impact on the result of its initiative. Technology when used in the right manner for the right purpose will be fruitful, if not then may lead to negative repercussions.

Conclusion

Despite these challenges, it is undeniable that the country utilized its best resource- the people. At the initial stage of development itself Singapore made sure to educate and upskill its unskilled labour force with knowledge on information technology, electronics etc. In the last three decades their development expenditure accounted for an average of 1/3^rd of the government expenditure. Singapore ranked 1^st out of 157 countries in the Human Capital Index , According to  that, “ A child born in Singapore today will be 88% as productive when she grows up as she could be if she enjoyed complete education and full health.” Also HCI for girls were greater than boys. Be it past, present or future, Singapore’s focus is on its people- it invests in and for people.  Overcoming the challenges and a complete focus on the goal of Smart Nation without any disruption on the road will lead to success.  

Final note– Technology can be one of the means to a better life and not an end.

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The US-China Dispute

The Red Dragon and Uncle Sam have a lengthy history of being at loggerheads. The US initially refused to recognise China as a sovereign state and indulged in many ministrations to displace the latter’s communist roots.  It was only in the 1970s that diplomatic relations took flight with the US acceptance of One China Policy. Still, their relations were fraught with friction, especially over human rights. When China entered the world economy and began opening up its economy, its engagement enhanced, with China going on to become America’s largest trading partner. With a few hiccups, the relationship seemed to be aiming for cooperation. However, it all radically changed in 2018 when the Trump government’s tariffs targetted China, setting off a vicious trade war that is still ongoing. What started out as a trade dispute couple of years ago has now turned into a full-blown show of might, branching into other areas as well.

In late 2018, the US signaled its hardline approach towards the eastern giant. The Huawei issue only intensified the same, and the US has done everything in its power to kick the Chinese MNC out of the 5G race on charges of spying. By 2019, the trade war had intensified, with both countries levying hefty tariffs on the other, and placing various other sanctions as well. Early 2020 saw the signing of a trade deal which provided a brief breather for the economic world, but the respite period remained short. The onset of the Covid-19 pandemic sent the global economy tumbling. America faced multi-faceted effects: its capitalist system suffered a downfall and the health system was brought to its knees. This tension had the hegemon accusing China of mismanaging the pandemic and causing harm to the world, eventually pulling out of WHO due to the latter’s support of China. China obviously, did not take the accusations well. But it was the new security law imposed in Hong Kong that proved to be the last nail in the coffin. Trump went on to strip the city of its special status, reducing its credibility as a world economic and financial hub. China accused America of interfering in its domestic affairs, and everything has been downhill since.

The Asian Playground

Due to the deterrence that comes with two giants battling each other, the countries are unlikely to engage in an all-out war, even if relations have diminished to a new low. Their historical animosity played out in the Asian region much like the proxy wars that dominated the global landscape during the Cold War. Both nations have tried to expand the ambit of their influence by espousing Asia-centric policies. Obama’s presidency saw a more active role in the region coupled with an enhanced military presence. China on the other hand relies on its geo-economic power to bind Asia to it. The Belt and Road initiative, the String of Pearls approach, ADB Bank and increasing economic investment promises financial advancement for the region. South Asia in one of the most populous regions in the world, yet intra-regional trade is quite fragmented (just 5%), which reduces the economic benefits it can reap. Thus China’s meteoric economic rise has proved to be a fundamental driver of economic growth. 

US security cover coupled with economic benefits from China has helped in the advancement of many countries, resulting in the expectation that Southeast Asia will become the fourth-largest economy in the world, overtaking the European Union and Japan by 2050. Therefore for Southeast Asian nations, especially the ASEAN market is a key area for both America and China. The US is now frantically looking to shift Asian loyalties to its side as it perceives the rising Chinese aggression and economic strength as a threat.  That is why it has taken a strong position against China’s assertions in the South China Sea and has tried to play on the insecurities of the latter’s neighbours regarding the same. This ‘harbinger of justice’ role has helped the nation gain influence in the region, which was a difficult task because of China’s proximity to it. America is also banking on its military and technological investment to gain the region’s unequivocal support. 

Since the beginning of the Sino-American trade war, Southeast Asia has been an undisputed winner on account of the benefits it is reaping. The high American tariffs on Chinese goods have led to a shift in manufacturing processes to the region. In 2019 Chinese acoustics manufacturer Goertek announced that it will shift its Apple’s Airpods wireless headphones production to Vietnam because of the ongoing trade dispute. Similarly, Cambodia has bagged bicycle production for a high-value US firm, and Thailand has become a hub of vehicle assembly plants. According to Forbes, a survey of U.S. firms manufacturing in China found that 18.5% had either moved production to Southeast Asia or were considering it.

Usually, ASEAN countries have been able to maintain a delicate balance between American geopolitics and Chinese geo-economics. But as both countries increase the heat, it is difficult to predict if the future will force the region to choose sides. For now, Southeast Asia is having a good ride!

The Indian Factor

India has been facing a sudden increase in tensions with China too. The border dispute has led to a fresh impasse, the first one since Doklam. But this time the costs have been higher, with multiple skirmishes and martyred soldiers lining the situation. In response, India, akin to America, has tried to economically isolate China by banning 59 Chinese apps and making calls for being ‘Aatmanirbhar’. But it is easier said than done, for the mammoth amount of trade between the two is skewed in China’s favour. Some would think it is natural for India to lean on the US, especially in view of the latter’s vocal support of India in the afore-mentioned border dispute. It is to an extent true too: India has gained around $755 million in US exports since the trade war disrupted relations. India is also the only country capable of countering China’s influence in a disintegrated Asia. It also has a large youthful population capable of rapid mass production which it could use to its advantage in view of the trade war. 

But the path is not as smooth as it looks. There are multiple factors that weigh India down as compared to Southeast Asia when it comes to being business-savvy. The country has a massive supply of cheap labour but lags glaringly in other areas. Poor infrastructure to accommodate foreign production, inadequate technology, complicated labour laws and red-tapism of a sloth-like bureaucracy have tainted the country’s hopes of attracting foreign investment. That is why despite improving its Ease of Doing Business rankings by 37 places, it still is only the ninth-largest trading partner of the USA. Its tedious land-acquisition laws coupled with hostile neighbourhoods have not done much to attract investors. In addition to this, India’s decision to not be a part of the trade agreement with ASEAN called Regional Comprehensive Economic Partnership (RCEP) has put it on the back foot. It passed up on a chance to economically seal the deal with the fastest growing economic region and its markets.

In view of these shortcomings, Southeast Asia proves to be a better region to direct investments to. In fact, India is not extremely affected by the trade war as it has not gained much from it. 

Conclusion

The United States of America and China are the two hegemons that balance the current multi-polar world. This grandiosity of sorts, coupled with their mutual interdependence in terms of trade and technology makes it difficult for them to inflict real-time damage on each other, or indulge in an all-out confrontation. That being said, the current animosity between the two is different from their usual spats. In this pandemic-riddled world their tensions have been aggravated by blame-game, allegations of spying, erosion of Hong Kong’s democratic rights and of course, the rejuvenated trade-war. Many Asian countries have benefitted from this fallout and gained increased investment from the US and more come-hither offers by China. It is now to see how their balancing act will progress. However, India has a long way to trudge before it can fully reap the benefits of the clash and needs to work on its internal infrastructure and policies to attract any advantages.

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